Good CEO or bad CEO?

Should a company be run with a very long term view
even if short term dividends suffer? Wall Street does
not care what happens in 20 years.
http://www.forbes.com/business/energy/feeds/ap/2005/09/27/ap2246774.html

Associated Press
Update 1: Porsche Shares Rise on Details of VW Plan
09.27.2005, 11:51 AM
Porsche AG said Tuesday that it can pay for a plan to raise its stake
in Volkswagen with the funds it has on hand and is looking at the
possibility of holding some seats on VW's board. Shares in the luxury
automaker gained sharply.
Investors had shown their disapproval of Porsche's plans by pushing the
stock down 10 percent on Monday. But they appeared mollified by word
that Porsche would not have to raise additional capital to fund its
increased stake.
Shares in Porsche gained nearly 8.5 percent to close at euro659
(US$791.13) in Frankfurt.
"We will pay everything from our existing liquidity," Porsche spokesman
Anton Hunger said.
Another Porsche spokesman, Albrecht Bamler, said the company would not
disclose how many seats it was seeking on VW's supervisory board. "It's
too early to say," he said.
Stuttgart-based Porsche, which had held less than 5 percent of VW, has
said raising its stake to 20 percent would secure ties between the
companies and ward off any future hostile takeover of Volkswagen by
investors "who do not have the long-term interests of VW as their aim."
That scenario could arise if the European Court of Justice rules
against a German law that effectively keeps any VW shareholder's voting
rights at 20 percent and protects the company, Europe's largest
automaker, from a hostile takeover.
Labor union IG Metall said Porsche's decision wouldn't result in any
undue influence on Wolfsburg-based VW.
"I don't think there will be a big impact," union spokesman Hartmut
Meine said. "VW is now protected from hostile takeover, hedge funds
will lose interest."
Porsche and VW worked together to develop Porsche's Cayenne sport
utility vehicle and Volkswagen's Touareg. They recently announced that
they, along with Audi AG, were forming an alliance to develop hybrid
engines.
Volkswagen is in the midst of a cost-cutting drive aimed at shoring up
its earnings amid criticism from investors that the Wolfsburg-based
company is inefficiently run.
.

Log in

Motorsforum.com is a website by car enthusiasts for car enthusiasts. It is not affiliated with any of the car or spare part manufacturers or car dealers discussed here.
All logos and trade names are the property of their respective owners.